"We want Daniel to stay," the City oss told the club's official website.
"The situation is that he has six months left, his advisors are in an understanding where they are in a position of strength, and we want to do a deal that shows our intent with regard to Daniel.
"We're not quite there yet, but we are hopeful.
"I think there are meetings planned for this week, we hope something can come from that and Daniel can put it all to bed.
"He's made three league starts so is still learning his trade, but what he has done when he's come on is make an impression.
"That's what you have to do as a young player, but we see him day-in, day-out and we know his qualities.
"We want to keep him, but there has to be an understanding from his advisors that there is a level for everybody.
"I am sure there is a compromise to be made and we'll get there very soon."